07:54 AM EST, 01/14/2025 (MT Newswires) -- (Updates with additional details in the third, fourth and fifth paragraphs and the latest stock movement in the sixth paragraph.)

Applied Digital ( APLD ) said Tuesday it has struck a $5 billion perpetual preferred equity funding facility with Macquarie.

Under the terms, Macquarie's asset-management unit agreed to invest up to $900 million in Applied Digital's ( APLD ) high performance computing data center campus in Ellendale, North Dakota, the company added.

The asset-management arm also owns a right of first refusal to further invest up to a further $4.10 billion in Applied Digital's ( APLD ) future high performance computing data centers for 30 months, the company said.

Under the terms, Macquarie's arm will hold 15% common equity ownership in Applied Digital's ( APLD ) high-performance computing business, with Applied Digital ( APLD ) maintaining the remaining 85% stake, according to the company.

Applied Digital ( APLD ) said it will use the proceeds to complete the construction of the 400 megawatts Ellendale campus, repay the current outstanding $180 million debt, recover an equity investment of $300 million in the Ellendale campus, and pay transaction expenditures.

Shares of the company were up 17% in recent Tuesday premarket activity.